He will fly out to join the Fulham squad on their 10-day tour of Sweden next week.
Sven Goran Eriksson had appeared to be favourite for the job until it emerged Ajax chief Jol had been in talks with the club.
Negotiations stalled over pay. Club owner Mohamed Al Fayed had earmarked a salary of £1.5m a year - £1m less than Jol earned at Ajax.
However, the pair reached a compromise, with Jol known to be keen to return to the Premier League.